M/s Shakti Industries, Ahmedgarh. V. ACIT, C-IV, Ludhiana

ITA 886/CHANDI/2018

• Counselvise Citation: [2018] 119 COUNSELVISE.COM (IT) 0449 (ITAT-CHANDIGARH)
• Duration Of Justice: 5 month(s) 15 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 28-11-2018
• Appeal Filed By: Assessee
• Order Result: Allowed
• Bench Allotted: SMC
• Assessment Year: 2014-2015
• Appeal Filed On: 13-06-2018
• Result in Favour of: Assessee
• Court: TRIBUNAL
• Department Lawyers: ZENIA HANDA
• Keywords: Opportunity of being heard
• Section: 68

Judgement Text

, , IN THE INCOME TAX APPELLATE TRIBUNAL, CHANDIGARH BENCH SMC CHANDIGARH !', # BEFORE: SMT. DIVA SINGH, JM ./ ITA NOS. 886 & 887/CHD/2018 / ASSESSMENT YEAR : 2014-15 & 2015-16 M/S SHAKTI INDUSTRIES, JAGERA ROAD, AHMEDGARH. VS THE ACIT, CIRCLER-IV,LUDHIANA. ./ PAN NO: ABAFS2012H / APPELLANT / RESPONDENT ! ' / ASSESSEE BY : NONE # ! ' / REVENUE BY : SMT. ZENIA HANDA, SR.DR $ % ! &/ DATE OF HEARING : 20.11.2018 '()* ! &/ D ATE OF PRONOUNCEMENT : 28.11.2018 $%/ ORDER BOTH THESE APPEALS HAVE BEEN FILED BY THE ASSESSEE AS SAILING THE CORRECTNESS OF THE SEPARATE ORDERS DATED 23.04.2018 AN D 19.04.2018 RESPECTIVELY OF CIT(A)-2, LUDHIANA PERTAINING TO 2014-15 A ND 2015-16 ASSESSMENT YEAR ON IDENTICAL ISSUES. 2. AT THE TIME OF HEARING, NO ONE WAS PRESENT ON BEHALF OF THE ASSESSEE. THE APPEAL WAS PASSED OVER. SINCE DESPITE A PASS OVER, ASSESSEE REMAINED UNREPRESENTED, CONSIDERING THE GROUNDS RAISED, IT WAS DEE MED APPROPRIATE TO PROCEED WITH THE PRESENT APPEAL EX-PARTE QUA THE A SSESSEE APPELLANT ON MERIT AFTER HEARING LD. SR.DR MS. ZENIA HANDA. 3. THE RELEVANT FACTS PERTAINING TO 2014-15 ASSESSMENT YEAR ARE BEING REFERRED TO. A PERUSAL OF THE RECORD SHOWS THAT THE AS SESSEE FIRM ENGAGED IN TRADING AND MANUFACTURING OF CATTLE FEED, MUSTARD OIL AS WELL AS PACKAGING OF MUSTARD OIL, RETURNED AN INCOME OF RS. 21,03,420/-. THE A SSESSEE WAS REQUIRED TO EXPLAIN THE DEPOSITS IN HIS ACCOUNT. PARTLY ACCEPTING THE EXPENDITURE, ADDITION OF RS. 11 LAKH WAS MADE IN THE HANDS OF THE ASSESSEE. 4. THE ISSUE WAS CARRIED IN APPEAL BEFORE THE CIT(A) WHO GRANTED PART RELIEF. THE LD. SR.DR WAS REQUIRED TO SUPPORT THE ORDER P ASSED BY REFERRING TO FACTS ON RECORD AND ADDRESSING THE PRIMARY ISSUE, WHE THER THESE WERE ITA 886&887/CHD/2018 A.Y. 2014-15 & 2015-16 PAGE 2 OF 2 TRADE ADVANCE BY THESE PARTIES OR DEPOSITS MADE FOR AC QUIRING AN ASSET ETC. IN THE ABSENCE OF ANY DISCUSSION IN THE ORDER, ASSESSEE W AS UNABLE TO ADDRESS THIS ASPECT, HOWEVER, RELIANCE WAS PLACED UPON THE ORDER. 5. SIMILARLY, IT IS SEEN THAT IN 2015-16 ASSESSMENT YEAR, TH E ASSESSEE RETURNED AN INCOME OF RS. 34,09,440/- FROM SIMILAR ACTIVITY. THE BOOKS OF ACCOUNT MAINTAINED AS IN THE EARLIER YEAR, IN THE YEAR UND ER CONSIDERATION WERE ALSO PRODUCED. THE AO IN THE COURSE OF THE PROCE EDINGS HEREIN ALSO, REQUIRED THE ASSESSEE TO JUSTIFY THE UNSECURED LOANS. IT IS SEEN THAT THE ASSESSEE CONSISTENTLY ARGUED THAT SECTION 68 OF THE AC T WAS NOT ATTRACTED. HOWEVER, IN THE FACTS OF THE PRESENT CASE ALSO, THOUGH VA RIOUS DECISIONS HAVE BEEN REFERRED TO BY THE TAX AUTHORITIES, HOWEVER, WHETHER THESE WERE TRADE ADVANCES OR FRIENDLY ADVANCES ETC. MADE OTHERWISE IS NOT COMING OUT FROM THE RECORD. ACCORDINGLY, IN VIEW OF THE ABSENCE OF RELEVANT DISCUSSION IN THE ORDERS QUA THE ADDITIONS SUSTAINED BY THE CIT(A), T HESE ARE RESTORED BACK TO THE FILE OF THE AO WITH THE DIRECTION TO ADDRESS T HE FACTS CORRECTLY AND COMPLETELY AS ONLY AFTER ADDRESSING THE ISSUE WHET HER THESE ARE TRADE ADVANCES OR THESE ARE UNSECURED LOANS FROM FAMILY, FRIENDS AND RELATIVES ETC. THE PRINCIPLES OF LAW APPLICABLE FOR DETERMINING THE ISSUES WOULD COME INTO PLAY. THE DECISIONS APPLICABLE WOULD DEPEND UPON THE FA CTS AND DISCUSSION ON THE CASE LAW CARRIED OUT IN THE ABSENCE OF RELEVANT DISCUSSION ON FACTS IS OF NO HELP. WHILE SO RESTORING, IT IS HOPED THAT THE ASSESSEE PARTICIPATES IN THE PROCEEDINGS FULLY AND FAIRLY. THE AO IS DIRECTED TO PROVIDE THE ASSESSEE A REASONABLE OPPORTUNITY OF BEING HEARD. SAID ORDER WAS PRONOUNCED IN THE OPEN COURT AT THE TIME OF HEARING ITSELF. 6. IN THE RESULT, THE APPEALS OF THE ASSESSEE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 28.11. 2018. SD/- ( !' ) (DIVA SINGH) # / JUDICIAL MEMBER ' ( (+ ! ,- .- / COPY OF THE ORDER FORWARDED TO : 1. / THE APPELLANT - 2. / THE RESPONDENT - 3. $ / / CIT 4. $ / ()/ THE CIT(A) 5. -23 4, & 4, 67839/ DR, ITAT, CHANDIGARH 6. 38 :%/ GUARD FILE (+ $ / BY ORDER, ; #/ ASSISTANT REGISTRAR